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1st Source Bank turns record profit in the 1st quarter

1st Source Bank headquarters is shown in downtown South Bend. The bank posted a record profit in the first quarter.

1st Source Bank turned a record profit of $22.2 million in the first quarter, a 16.1% year-over-year increase and the most in its 156-year history.

The South Bend-based bank, which has an extensive presence across Porter and LaPorte counties, also posted a record income per share of $0.86.

“1st Source Corp. had a strong first quarter. We continue to achieve steady growth in net income and see healthy increases in loans, leases, and deposits," Chairman Christopher Murphy III said.

1st Source's return on average assets grew by 1.43% during the first three months of the year. Shareholders' equity rose to 11.61%.

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“At 1st Source, we value integrity, teamwork, superior quality, outstanding client service, community leadership, true relationship banking and operating with strong capital and reserves," Murphy said. "We believe it is these values that differentiate us from our competition, and it seems others have taken notice. In March, we once again received the BauerFinancial 'Superior' Five-Star rating — the highest rating possible.”

The bank grew its average loans by 5.87% to $269.4 million, its deposits by 7.45% to $350.92 million, and net interest income 8.84% by $4.42 million.

“Our focus on smaller businesses continues to receive recognition across the state of Indiana," Murphy said. "For the sixth year in a row, we were honored with the Gold Level award in the Community Lender’s category by the Small Business Administration. This award honors 1st Source Bank as number among Indiana community banks with less than $10 billion in assets for making the greatest number of SBA loans during 2018. We have devoted over 155 years to serving small businesses and maintain a dedicated SBA department to ensure the highest level of service to our clients, and this recognition confirms our strategic focus is successful.

The bank declared a dividend of $0.27 per share, up 12.5% year-over-year. It will be paid on May 15 to anyone who owned stock on May 6.

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Business Reporter

Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.